In North Carolina in 2026 a heat pump replacement can combine three layers of incentive — Energy Saver NC (income-tiered, applied at point of sale, up to $8,000), your electric utility’s rebate (not income-tested, usually paid after install), and any manufacturer or contractor promotion — with the state’s rule that combined rebates can’t exceed the purchase price; the federal 25C credit no longer applies to 2026 installs. Which layers you get depends almost entirely on your household income relative to area median income, so that’s the first thing to establish.
Step 1: find your income tier
Energy Saver NC eligibility runs on household income as a share of area median income (AMI) for your county and household size. Below 80% AMI, up to 100% of cost is covered within the caps; 80–150% AMI, up to 50%; above 150%, not eligible for the state program. The portal has a checker, and enrollment in LIEAP or Medicaid can qualify you for the top tier without further income verification. Energy Saver NC explained.
Step 2: know your utility
Duke Energy Progress and Duke Energy Carolinas each pay a heat pump rebate (reported around $500 for a like-for-like replacement and more when replacing strip heat); municipal utilities and cooperatives have their own. Your utility’s rebate is not income-tested. Duke Energy rebates.
Step 3: apply in this order
Confirm state eligibility on the portal before you buy. Get quotes from contractors registered with Energy Saver NC (and participating with your utility); the state rebate is applied on the invoice by the contractor. After installation, the contractor files the utility rebate. Manufacturer or seasonal promotions are applied by the contractor at quote time. Keep the invoice, model/serial numbers and AHRI certificate.
Worked example: $10,000 mid-tier ducted heat pump replacement, Duke Energy territory
| Household income tier | Energy Saver NC (HEAR) | Utility rebate (reported) | Net cost |
|---|---|---|---|
| Below 80% AMI | up to $8,000 (100% of cost within cap) | ~$500 | ~$1,500 |
| 80–150% AMI | up to $5,000 (50% of cost) | ~$500 | ~$4,500 |
| Above 150% AMI | not eligible | ~$500 | ~$9,500 |
If the heat pump replaces electric strip heat rather than an existing heat pump, the utility rebate is higher (reported $600–$1,000), and HEAR treats replacing resistance heat with a heat pump as a qualifying electrification measure. If your project also includes panel work, wiring or insulation, HEAR has separate line items for each within the $14,000 per-dwelling cap. Larger or premium systems shift the numbers, but not the shape.
What doesn’t stack
The federal 25C credit ended for property placed in service after December 31, 2025 (status). Energy Saver NC can’t be double-counted with other federal grants (for example WAP) on the same measure. And no combination can exceed what you paid.
Practical notes
Contractor choice determines whether you can get the state rebate at all, because only registered contractors can deliver it; ask before the quote. Rebates that go through the contractor should appear as line items on the invoice so you can see the pre- and post-rebate price. And funding is first come, first served through 2031 or until depleted, so an eligible household with an aging system should not wait for a failure. Current installed prices by metro are on the NC heat pump cost page, and every contractor on the North Carolina registry shows the license status we found.